What do I tell LPs trying to invest in Anthropic?
First, a gut-check: “Do you really want this?” Anthropic is very expensive, fully baked, and there is a lot of noise in the market. Do they want in, or would they like me to help them find the next wave of top 20 unicorns (with direct access, control and a lot less hype)?
Second, I make sure they’re very clear about what’s going on right now. Every GP is trying to get their potential allocation 3-4x oversubscribed, so they can fund quickly and reliably when they receive word from Anthropic. LPs need to understand that:
- “Binding” LOIs are not binding.
- “Secure” allocations are not secure.
- Sending a proof of funds doesn’t guarantee an allocation, (and worse, will likely make rounds).
- Signing subscription agreements does not guarantee an allocation.
- No one has shares issued yet.
Third, if they’re set on Anthropic, and if they’re going in clear eyed, I help them figure out what they’re looking at. I vet the upfront fees, management fees and carried interest against commercial and regulatory standards. I check how many surprise brokers, “seller representatives” or “consultants” are between them and the GP. I verify whether the GP is actually likely to get an allocation, and finally (most importantly) I listen to their story. If it sounds too good to be true, it usually is.
Most LPs I know are now starting to question whether this is for them. Right now, it’s worth taking a breath, stepping back, and only talking to people you trust.
Oh and Rebecca told me I need to put a picture here, for the algorithm. Here is one of me yesterday after 20 calls with many stressed-out people (LPs, wealth managers, brokers, GPs alike).